Greg Kidd, former congressional candidate and entrepreneur, unveiled plans for a new banking charter that may simplify licensing for digital firms such as Ripple.
Proposed Charter to Simplify Banking Access
Kidd, co-founder of Haka Yaka Ventures and owner of Vast Bank, described a charter designed for institutions that handle only deposits and payments, without requiring physical branches or lending activities. He emphasized that this initiative aims to facilitate licensing for digital-first firms like Ripple, although he clarified that he was speaking theoretically and did not suggest Ripple was planning to apply.
Advocating for Lower Payment Costs
Kidd also spotlighted the low settlement costs on the XRP Ledger, noting that the expense of transferring money using XRPL is nearly zero. He argued that payment costs should be minimal and compared efficient payment systems to public utilities. Furthermore, he criticized the existing licensing regime, pointing out that only a few individuals, like himself and Jackie Reses from Lead Bank, have successfully secured banking permissions under the Biden administration.
Ripple's Position in the Banking Sector
On the other hand, Ripple has been progressively integrating into traditional finance, joining the American Bankers Association (ABA) as a Platinum Member in June 2024. During the same Las Vegas event, Ripple's CEO Brad Garlinghouse reiterated the company's commitment to banking reforms by enabling faster, cheaper cross-border payments without displacing banks but enhancing their settlement capabilities. Kidd also discussed his strategy of acquiring a U.S. bank to allow the issuance of dollar-backed tokens on the blockchain.
Greg Kidd's proposal for a streamlined banking charter reflects a wider push to modernize the financial system and make it more accessible for digital players such as Ripple.
